Is land for building private hospitals subject to non-agricultural land use tax in Vietnam?

Is land for building private hospitals subject to non-agricultural land use tax in Vietnam?

Pursuant to Point b, Clause 1, Article 3 of Decree 53/2011/ND-CP, the regulation is as follows:

Exemptions from tax

Non-agricultural land used for non-business purposes as stipulated in Article 3 of the Law on Non-Agricultural Land Use Tax is exempt from tax, specifically:

1. Land used for public purposes includes:

a) Land for transportation and irrigation purposes, including land for constructing traffic roads, bridges, culverts, sidewalks, railways, land for constructing airport infrastructure, including land within the planned airport construction area but not yet constructed due to phased investments approved by competent authorities, land for water supply systems (excluding water production plants), drainage systems, irrigation works, dikes, and land within transportation and irrigation safety corridors;

b) Land for constructing cultural, healthcare, education and training, sports facilities serving public interests including land used for kindergartens, schools, hospitals, markets, parks, flower gardens, children's playgrounds, squares, cultural works, commune-level post offices, monuments, memorial plaques, museums, rehabilitation centers for the disabled, vocational training centers, drug rehabilitation facilities, reeducation camps, social welfare shelters for the elderly and children in difficult circumstances;

...

Thus, land for constructing cultural, healthcare, education and training facilities, including hospitals whether public or private, is not subject to non-agricultural land levy. However, it must be non-agricultural land used for non-business purposes.

Is land for building private hospitals subject to non-agricultural land use tax in Vietnam? (Image from the Internet)

Is land for mineral exploitation in production and business subject to non-agricultural land use tax in Vietnam?

Pursuant to Point c, Clause 2, Article 2 of Decree 53/2011/ND-CP, the regulation is as follows:

Taxable subjects

Subjects liable to non-agricultural land use tax are as prescribed in Article 2 of the Law on Non-Agricultural Land Use Tax. To be specific:

1. Residential land in rural areas, homestead land in urban areas:

2. Land for non-agricultural production and business prescribed in Clause 2, Article 2 of the Law on Non-Agricultural Land Use Tax, includes:

a) Land for industrial park construction including land for constructing industrial clusters, industrial parks, export processing zones, and other concentrated production and business areas with the same land use policies;

b) Land for creating construction sites for production and business facilities including land for constructing industrial, craft production facilities; constructing commercial and service business premises and other facilities serving production and business (including land for creating sites for constructing production and business facilities in high-tech parks and economic zones);

c) Land for mineral exploitation, land for creating sites for mineral processing, except in cases where mineral exploitation does not affect the topsoil or surface land;

d) Land for producing construction materials, ceramics including land for exploiting raw materials and creating sites for processing and producing construction materials, ceramics.

3. Non-agricultural land as prescribed in Article 3 of this Decree by organizations, households, and individuals used for business purposes.

Thus, according to this regulation, not all land for mineral exploitation and creating sites for mineral processing is subject to tax, except in cases of mineral exploitation that do not affect the topsoil or surface land.

What are regulations on authority for deciding non-agricultural land tax exemption and reduction in Vietnam?

Pursuant to Article 12 of Circular 153/2011/TT-BTC guiding the non-agricultural land use tax issued by the Ministry of Finance, the authority for deciding tax exemption and reduction is regulated as follows:

- The tax authority directly managing tax returns is responsible for determining the amount of non-agricultural land use tax to be exempted or reduced and deciding on the exemption or reduction for taxpayers according to the tax period.

- Specific cases are handled as follows:

+ In the case of exemption or reduction of non-agricultural land use tax for households and individuals under Clauses 4, 5, 6 of Article 10 and Clauses 2, 3 of Article 11 of this Circular, the head of the Tax Sub-department issues a general decision based on the proposal list of the commune-level People's Committee.

Annually, the commune-level People's Committee is responsible for reviewing and sending the list of tax-exempt or reduced subjects according to regulations for the tax authority to implement tax exemptions or reductions according to their authority.

+ In the case of exemption or reduction according to Clause 9 of Article 10 and Clause 4 of Article 11 of this Circular, the head of the directly managing Tax Authority issues a decision based on the taxpayer's request and the confirmation of the commune-level People's Committee where the damaged land is located.

+ In other cases, taxpayers must submit documents accompanied by evidence proving eligibility for non-agricultural land use tax exemption or reduction according to regulations or confirmation from the commune-level People's Committee where the taxable land is located to the directly managing tax authority for resolution.